Increased Cross-Plant Manufacturing Activities to Create Opportunities for the Global BOM Software Market Through 2020, Reports Technavio
By Business Wire News
By Business Wire News
The research study covers the present scenario and growth prospects of the global BOM software marketfor 2016-2020. The report also lists the automotive industry, electrical and electronics industry, aerospace and defense industry, and others as the four major end-user segments for the BOM software market.
Technavio ICT analysts highlight the following four factors that are contributing to the growth of the global BOM software market:
- Improved efficiency of supply chain
- Increase in mass customization
- Need to enhance communication among business units
- Increased cross-plant manufacturing activities
Improved efficiency of supply chain
The adoption of BOM solutions enables effective coordination among the production units and suppliers. These solutions help companies analyze the impact of supplier costs on the final product cost. Various departments of production units such as purchasing, manufacturing, design, engineering, and quality have access to supplier information through collaborative product data management (cPDM), which consists of BOM solutions.
According to Amrita Choudhury, a lead analyst at Technavio for enterprise application research, “The integration of supply chain and cPDM solutions helps companies in making purchase decisions and providing supplier analytics.” Through the adoption of cPDM and BOM solutions, the specifications are introduced to the suppliers to do a detailed study and describe the feasibility of the product specifications. This enables effective and efficient coordination and integration between the suppliers and the production units.
Increase in mass customization
The rise in demand for product customization has led to an increased use of BOM solutions across various industries. Initially, companies were dependent on mass production to reduce cost. However, mass customization is gaining popularity. Customization of the product can lead to the creation of a single BOM, which can be used once or multiple times. Thus, there is a shift from product identity to product technicality during the creation of BOM.
A customer-facing product configurator is used for the generation of BOM. These details are passed through the production units for manufacturing. cPDM solutions act as a tool for managing the life cycle of BOM and small components of the configurator.
Need to enhance communication among business units
Most companies have their business units such as designing, manufacturing, and assembling, spread across different countries. The adoption of cPDM and BOM solutions helps to establish effective communication among these units. These solutions enable data creation, sharing, integration, storing, retrieval, and management across the various divisions irrespective of their location. This leads to faster product development and faster problem solving, as well as reduced cost.
For instance, T3 Energy Services, a US-based company that manufactures and designs well control parts and components for the oil and gas industry, uses ENOVIA, a cPDM software developed by Dassault Systèmes. This software helps to manage design data and BOM across its multiple locations.
Increased cross-plant manufacturing activities
Most products are manufactured in different locations and then assembled. It is difficult for a single vendor to manufacture products with different specifications and requirements in a single location and to supply them to different locations simultaneously. The maintenance of data consistency and security is difficult when a product goes through two or more plants. The process requires reliable collaboration between manufacturing, engineering, research, and design units. BOM software ensures efficient data communication between these units.
For instance, it allows the engineering unit to communicate with the production unit to resolve issues related to quality, design changes, specifications, and manufacturing. “Thus, BOM, as a part of cPDM software, plays a critical role in cross-plant manufacturing activities,” says Amrita.
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